Systems, apparatuses, and methods for implementing priority adjustment forwarding are disclosed. A system includes at least one or more processing units, a memory, and a communication fabric coupled to the processing unit(s) and the memory. The communication fabric includes a plurality of arbitration points. When a client determines that its bandwidth requirements are not being met, the client generates and sends an in-band priority adjustment request to the nearest arbitration point. This arbitration point receives the in-band priority adjustment request and then identifies any pending requests which are buffered at the arbitration point which meet the criteria specified by the in-band priority adjustment request. The arbitration point adjusts the priority of any identified requests, and then the arbitration point forwards the in-band priority adjustment request on the fabric to the next upstream arbitration point which processes the in-band priority adjustment request in the same manner.